Restructuring of Centrally Sponsored Schemes: Implications for Madhya Pradesh

The Union Budget 2015–16 provided a list of centrally sponsored schemes/programmes recommending a change in the funding pattern for these schemes. This paper tries to capture the implications of such recommendations for the state of Madhya Pradesh by analysing the data on the plan budget for the state for 2014–15 (RE) and 2015–16 (BE). The paper finds that if the funding pattern for the enlisted schemes were followed as per the recommendations provided in Union Budget 2015–16, the state of M.P would have to bear around 16 per cent of the plan expenditure, whereas it currently bears only about 11 per cent of the plan expenditure. This would imply an additional expenditure burden for the state.